Shape into 40 (1-1/4-inch) balls; press to flatten. Top each with cherry; wrap cream cheese mixture around cherry to completely enclose cherry. Re-roll into balls. Freeze 10 min.
Mix melted chocolate and food coloring until blended. Dip balls in chocolate; place on waxed paper-covered rimmed baking sheet.
Sprinkle with sugar. Refrigerate 1 hour or until firm.
